3 unchanged sentences
(in millions)
+Added: September 30,
2020 December 31,
1 unchanged sentence
Cash and cash equivalents $ 667.2 $ 337.5
−Removed: Accounts receivable, net of allowance for doubtful accounts of $29.1 and $19.0 as of June 30, 2020 and December 31, 2019, respectively 1,661.0 1,543.9
+Added: Accounts receivable, net of allowance for doubtful accounts of $26.6 and $19.0 as of September 30, 2020, and December 31, 2019, respectively 2,095.2 1,543.9
Unbilled services 603.5 481.4
27 unchanged sentences
Shareholders’ equity:
−Removed: Common stock, 97.3 and 97.2 shares outstanding at June 30, 2020 and December 31, 2019, respectively 9.0 9.0
+Added: Common stock, 97.4 and 97.2 shares outstanding at September 30, 2020, and December 31, 2019, respectively 9.0 9.0
Additional paid-in capital 80.7 26.8
4 unchanged sentences
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
−Removed: LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
+Added: co LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2020 2019 2020 2019
14 unchanged sentences
Provision for income taxes 243.4 66.4 358.0 214.4
−Removed: Net earnings (loss) 231.6 190.7 ( 85.3 ) 376.6
+Added: Net earnings 703.7 221.0 618.4 597.6
Net earnings attributable to the noncontrolling interest ( 0.3 ) ( 0.3 ) ( 0.6 ) ( 0.9 )
−Removed: Net earnings (loss) attributable to Laboratory Corporation of America Holdings $ 231.6 $ 190.4 $ ( 85.6 ) $ 376.0
−Removed: Basic earnings (loss) per common share $ 2.38 $ 1.94 $ ( 0.88 ) $ 3.82
−Removed: Diluted earnings (loss) per common share $ 2.37 $ 1.93 $ ( 0.88 ) $ 3.79
+Added: Net earnings attributable to Laboratory Corporation of America Holdings $ 703.4 $ 220.7 $ 617.8 $ 596.7
+Added: Basic earnings per common share $ 7.22 $ 2.26 $ 6.35 $ 6.08
+Added: Diluted earnings per common share $ 7.17 $ 2.25 $ 6.31 $ 6.04
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2 unchanged sentences
(in millions, except per share data)
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2020 2019 2020 2019
−Removed: Net earnings (loss) $ 231.6 $ 190.7 $ ( 85.3 ) $ 376.6
+Added: Net earnings $ 703.7 $ 221.0 $ 618.4 $ 597.6
Foreign currency translation adjustments 132.9 ( 92.6 ) 52.4 ( 45.4 )
1 unchanged sentence
Other comprehensive earnings (loss) before tax 135.0 ( 89.4 ) 59.9 ( 36.7 )
−Removed: Provision (benefit) for income tax related to items of comprehensive earnings ( 0.7 ) ( 0.8 ) ( 1.5 ) ( 1.5 )
+Added: Benefit for income tax related to items of comprehensive earnings ( 0.6 ) ( 0.9 ) ( 2.1 ) ( 2.4 )
Other comprehensive earnings (loss), net of tax 134.4 ( 90.3 ) 57.8 ( 39.1 )
−Removed: Comprehensive earnings (loss) 300.5 218.3 ( 161.9 ) 427.8
+Added: Comprehensive earnings 838.1 130.7 676.2 558.5
Net earnings attributable to the noncontrolling interest ( 0.3 ) ( 0.3 ) ( 0.6 ) ( 0.9 )
−Removed: Comprehensive earnings (loss) attributable to Laboratory Corporation of America Holdings $ 300.5 $ 218.0 $ ( 162.2 ) $ 427.2
+Added: Comprehensive earnings attributable to Laboratory Corporation of America Holdings $ 837.8 $ 130.4 $ 675.6 $ 557.6
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
26 unchanged sentences
BALANCE AT JUNE 30, 2019 $ 9.1 $ 91.4 $ 7,455.8 $ — $ ( 411.9 ) $ 7,144.4
+Added: Net earnings attributable to Laboratory Corporation of America Holdings — — 220.7 — — 220.7
+Added: Other comprehensive loss, net of tax — — — — ( 90.3 ) ( 90.3 )
+Added: Issuance of common stock under employee stock plans — 25.1 — — — 25.1
+Added: Net share settlement tax payments from issuance of stock to employees — ( 0.3 ) — — — ( 0.3 )
+Added: Stock compensation — 31.5 — — — 31.5
+Added: Purchase of common stock ( 0.1 ) ( 99.9 ) — — — ( 100.0 )
+Added: BALANCE AT SEPTEMBER 30, 2019 $ 9.0 $ 47.8 $ 7,676.5 $ — $ ( 502.2 ) $ 7,231.1
BALANCE AT DECEMBER 31, 2019 $ 9.0 $ 26.8 $ 7,903.6 $ — $ ( 372.4 ) $ 7,567.0
12 unchanged sentences
Stock compensation — 39.8 — — — 39.8
−Removed: Purchase of common stock — — — — — —
BALANCE AT JUNE 30, 2020 $ 9.0 $ 32.1 $ 7,760.6 $ — $ ( 449.0 ) $ 7,352.7
+Added: Net earnings attributable to Laboratory Corporation of America Holdings $ — $ — $ 703.4 $ — $ — $ 703.4
+Added: Other comprehensive earnings, net of tax — — — — 134.4 134.4
+Added: Issuance of common stock under employee stock plans — 21.9 — — — 21.9
+Added: Net share settlement tax payments from issuance of stock to employees — ( 0.5 ) — — — ( 0.5 )
+Added: Stock compensation — 27.2 — — — 27.2
+Added: BALANCE AT SEPTEMBER 30, 2020 $ 9.0 $ 80.7 $ 8,464.0 $ — $ ( 314.6 ) $ 8,239.1
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2 unchanged sentences
(in millions)
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
CASH FLOWS FROM OPERATING ACTIVITIES:
−Removed: Net earnings (loss) $ ( 85.3 ) $ 376.6
−Removed: Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
+Added: Net earnings $ 618.4 $ 597.6
+Added: Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 440.8 421.4
8 unchanged sentences
Increase in supplies inventory ( 147.5 ) ( 14.5 )
−Removed: (Increase) decrease in prepaid expenses and other 33.1 16.1
−Removed: Decrease in accounts payable ( 88.9 ) ( 109.0 )
+Added: Decrease in prepaid expenses and other 26.1 5.8
+Added: (Decrease) increase in accounts payable 17.3 ( 28.2 )
(Decrease) increase in unearned revenue 44.1 ( 1.0 )
5 unchanged sentences
Proceeds from sale or distribution of investments 1.0 9.4
+Added: Proceeds from exit from swaps 3.1 —
Investments in equity affiliates ( 29.3 ) ( 21.3 )
6 unchanged sentences
Payments on revolving credit facilities ( 151.7 ) ( 473.0 )
+Added: Payments on senior notes ( 412.2 ) —
Net share settlement tax payments from issuance of stock to employees ( 32.0 ) ( 40.4 )
2 unchanged sentences
Other ( 22.8 ) ( 21.9 )
−Removed: Net cash used for financing activities ( 119.7 ) 311.7
+Added: Net cash provided by (used for) financing activities ( 516.4 ) 196.7
Effect of exchange rate changes on cash and cash equivalents 0.6 ( 6.3 )
9 unchanged sentences
The Company’s mission is to improve health and improve lives by delivering world-class diagnostic solutions, bringing innovative medicines to patients faster and using technology to provide better care.
−Removed: The Company serves a broad range of customers, including managed care organizations (MCOs), biopharmaceutical companies, governmental agencies, physicians and other healthcare providers (e.g., physician assistants and nurse practitioners, generally referred to herein as physicians), hospitals and health systems, employers, patients and consumers, contract research organizations (CROs), and independent clinical laboratories.
+Added: The Company serves a broad range of customers, including managed care organizations (MCOs), biopharmaceutical and medical device companies, governmental agencies, physicians and other health care providers (e.g., physician assistants and nurse practitioners, generally referred to herein as physicians), hospitals and health systems, employers, patients and consumers, contract research organizations (CROs), and independent clinical laboratories.
The Company reports its business in two segments, LabCorp Diagnostics (LCD) and Covance Drug Development (CDD).
For further financial information about these segments, see Note 15 Business Segment Information to the Condensed Consolidated Financial Statements.
−Removed: During the three months ended June 30, 2020, LCD and CDD contributed approximately 61 % and 39 % respectively, of revenues to the Company.
−Removed: During the six months ended June 30, 2020, LCD and CDD contributed approximately 60 % and 40 %, respectively, of revenues to the Company.
+Added: During the three months ended September 30, 2020, LCD and CDD contributed approximately 68 % and 32 % respectively, of revenues to the Company.
+Added: During the nine months ended September 30, 2020, LCD and CDD contributed approximately 63 % and 37 %, respectively, of revenues to the Company.
The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries for which it exercises control.
31 unchanged sentences
The standard is effective on January 1, 2021, with early adoption permitted.
−Removed: The Company is currently evaluating the impact this new standard will have on the consolidated financial statements.
+Added: The adoption of this standard is not expected to have a material impact on the consolidated financial statements.
In December 2019, the FASB issued a new accounting standard to simplify accounting for income taxes and remove, modify, and add to the disclosure requirements of income taxes.
The standard is effective January 1, 2021, with early adoption permitted.
−Removed: The Company is currently evaluating the impact this new standard will have on the consolidated financial statements.
+Added: The adoption of this standard is not expected to have a material impact on the consolidated financial statements.
In January 2020, the FASB issued a new accounting standard to clarify the interaction of the accounting for equity securities and investments accounted for under the equity method of accounting and the accounting for certain forward contracts and purchased options.
The standard is effective January 1, 2021.
−Removed: The Company is currently evaluating the impact this new standard will have on the consolidated financial statements.
+Added: The adoption of this standard is not expected to have a material impact on the consolidated financial statements.
In March 2020, the FASB issued a new accounting standard to provide optional expedients and exceptions if certain conditions are met for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform.
The expedients and exceptions in the standard are effective between March 12, 2020, and December 31, 2022.
−Removed: The Company did not elect to apply any of the expedients or exceptions for the period ended June 30, 2020 and is currently evaluating the impact this new standard will have on the consolidated financial statements.
+Added: The Company did not elect to apply any of the expedients or exceptions for the period ended September 30, 2020, and is currently evaluating the impact this new standard will have on the consolidated financial statements.
+Added: In August 2020, the FASB issued a new accounting standard to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for convertible instruments and contracts in an entity's own equity.
+Added: The standard is effective January 1, 2022, with early adoption permitted.
+Added: The Company is evaluating the impact this new standard will have on the consolidated financial statements.
Novel Coronavirus (COVID-19) Financial Statement Impact
In March 2020, COVID-19 was declared a pandemic.
−Removed: COVID-19 has had and continues to have an extensive impact on the global health and economic environment.
−Removed: Given the continued unpredictability of the COVID-19 pandemic and the corresponding government restrictions and customer behavior, there are a wide-range of feasible financial results for 2020.
−Removed: While the Company's Base Business continues to be negatively impacted by the COVID-19 pandemic, the Company's outlook has improved across the enterprise.
−Removed: Base Business includes the Company's business operations except for molecular and serology COVID-19 testing (COVID-19 Testing).
−Removed: In LCD, demand for its Base Business continues to be below the Company's historical levels;
−Removed: however, the Company's Base Business has been steadily recovering from its trough in April, while at the same time COVID-19 Testing continues to grow and the Company continues to increase capacity for its COVID-19 molecular and antibody tests.
−Removed: In CDD, while the pandemic is expected to continue to negatively impact its business, this impact is expected to subside throughout the year as CDD continues to work on projects supporting global vaccine and treatment development, with additional support from COVID-19 Testing.
−Removed: As a result of the impact of the COVID-19 pandemic, during the six months ended June 30, 2020, the Company recorded goodwill and other asset impairment charges of $ 437.4 :
−Removed: $ 426.4 within CDD and $ 11.0 within LCD, all of which were recorded in the three months ended March 31, 2020.
−Removed: See Note 6 Goodwill and Intangible Assets for discussion of goodwill and intangible asset impairment and Note 2 Revenue for the discussion of credit losses and additional price concessions.
−Removed: The Company also wrote-off or wrote down certain of the Company's investments by $ 25.4 due to the impact of COVID-19, $ 7.1 included in Equity method earnings (loss), net (recorded in the three months ended March 31, 2020), and $ 18.3 included in Other, net ($ 13.1 recorded during the three months ended March 31, 2020 and $ 5.2 recorded during the three months ended June 30, 2020).
−Removed: In April 2020, the Company received cash payments of approximately $ 55.9 from the Public Health and Social Services Emergency Fund for provider relief (Relief Fund) that was appropriated by Congress to the Department of Health and Human Services (HHS) in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
+Added: COVID-19 has had and continues to have an extensive impact on the global health and economic environments.
+Added: During the nine months ended September 30, 2020, the Company recorded goodwill and other asset impairment charges of $ 437.4 , as a result of the negative financial impact of COVID-19 during the first quarter of 2020.
+Added: See Note 6 Goodwill and Intangible Assets for a discussion of goodwill and intangible asset impairment and Note 2 Revenues for a discussion of credit losses and additional price concessions.
+Added: The Company also impaired certain of the Company's investments by a total of $ 25.4 during the nine months ended September 30, 2020, due to the impact of COVID-19;
+Added: $ 7.1 was included in Equity method earnings (loss), net during the three months ended March 31, 2020, and $ 13.1 and $ 5.2 were included in Other, net during the three months ended March 31, 2020, and June 30, 2020, respectively.
+Added: In April 2020, the Company received cash payments of approximately $ 55.9 from the Public Health and Social Services Emergency Fund for provider relief that was appropriated by Congress to the Department of Health and Human Services (HHS) in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act Provider Relief Funds).
Upon receiving and satisfying the terms and conditions associated with the distributed funds, the Company accounted for the transaction by applying the guidance in ASC 450-30 Gain Contingencies, and recorded these funds in Other, net non-operating income in the Consolidated Statement of Operations as of June 30, 2020.
−Removed: The Company instituted numerous actions to help mitigate the financial impact from the COVID-19 pandemic, which included furloughs, reduced hours, and the suspension of discretionary merit adjustments and 401(k) plan contributions in the
+Added: In August 2020, the Company received an additional $ 76.2 in CARES Act Provider Relief Funds.
+Added: As the Company's Diagnostic business demonstrated recovery and demand for COVID-19 testing increased, the Company determined that the negative financial impact of COVID-19 which the CARES Act Provider Relief Funds were designed to address no longer applied to the Company.
+Added: As a result, the Company derecognized the income associated with the $ 55.9 received during the second quarter as a change in estimate and did not recognize any income related to the cash payment of $ 76.2 received in the third quarter.
+Added: The Company plans to return the CARES Act Provider Relief Funds to the government in the fourth quarter of 2020 and has recorded a liability of $ 132.1 in Accrued expenses and other as of September 30, 2020.
+Added: Use of Estimates
+Added: The extent to which the COVID-19 pandemic has and will impact the Company’s business and financial results depend on numerous evolving factors including, but not limited to:
+Added: the magnitude and duration of the COVID-19 pandemic, the impact to worldwide macroeconomic conditions including interest rates, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business reactions to the pandemic.
+Added: The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of September 30, 2020, and through the date of this
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
1 unchanged sentence
(dollars and shares in millions, except per share data)
−Removed: United States (U.S.).
−Removed: In response to its improved business operations, the Company has been rapidly resuming regular work schedules and is proceeding with merit adjustments and will retroactively reinstate 401(k) plan contributions in the U.S.
−Removed: Use of Estimates
−Removed: The extent to which the COVID-19 pandemic has and will impact the Company’s business and financial results will depend on numerous evolving factors including, but not limited to:
−Removed: the magnitude and duration of the COVID-19 pandemic, the extent to which it will impact worldwide macroeconomic conditions including interest rates, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business reactions to the pandemic.
−Removed: The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of June 30, 2020 and through the date of this report.
The accounting matters assessed included, but were not limited to, the Company’s implicit price concessions and credit losses, equity investments, notes receivable and the carrying value of goodwill and other long-lived assets.
The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in additional material impacts to the Company’s consolidated financial statements in future reporting periods.
−Removed: The Company's revenues by segment payers/customer groups for the three and six months ended June 30, 2020, and 2019, were as follows:
−Removed: For the Three Months Ended June 30, 2020
+Added: The Company's revenues by segment payers/customer groups for the three and nine months ended September 30, 2020, and 2019, were as follows:
+Added: For the Three Months Ended September 30, 2020
Canada United Kingdom Switzerland Other Europe Other Total
7 unchanged sentences
Total revenues 82 % 2 % 4 % 4 % 2 % 6 % 100 %
−Removed: For the Three Months Ended June 30, 2019
+Added: For the Three Months Ended September 30, 2019
Canada United Kingdom Switzerland Other Europe Other Total
10 unchanged sentences
(dollars and shares in millions, except per share data)
−Removed: For the Six Months Ended June 30, 2020
+Added: For the Nine Months Ended September 30, 2020
Canada United Kingdom Switzerland Other Europe Other Total
7 unchanged sentences
Total revenues 79 % 2 % 5 % 4 % 3 % 7 % 100 %
−Removed: For the Six Months Ended June 30, 2019
+Added: For the Nine Months Ended September 30, 2019
Canada United Kingdom Switzerland Other Europe Other Total
19 unchanged sentences
Amortization of deferred contract fulfillment costs is included in cost of goods sold.
−Removed: June 30, 2020 December 31, 2019
+Added: September 30, 2020 December 31, 2019
Sales commission assets $ 32.8 $ 28.6
1 unchanged sentence
Total $ 45.7 $ 43.5
+Added: Amortization related to sales commission assets and associated payroll taxes for the three months ended September 30, 2020, and 2019, was $ 6.0 and $ 5.8 , respectively, and for the nine months ended September 30, 2020, and 2019, was $ 16.8 and $ 15.3 , respectively.
+Added: Amortization related to deferred contract fulfillment costs for the three months ended September 30, 2020,
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
1 unchanged sentence
(dollars and shares in millions, except per share data)
−Removed: Amortization related to sales commission assets and associated payroll taxes for the three months ended June 30, 2020, and 2019, was $ 5.5 and $ 5.1 , respectively and for the six month periods ended June 30, 2020, and 2019, was $ 10.8 and $ 9.5 , respectively.
−Removed: Amortization related to deferred contract fulfillment costs for the three months ended June 30, 2020, and 2019, was $ 2.3 and $ 1.9 , respectively, and was $ 5.3 and $ 3.8 , respectively, for the six month periods ended June 30, 2020, and 2019.
+Added: and 2019, was $ 2.3 and $ 2.3 , respectively, and was $ 7.6 and $ 6.1 , respectively, for the nine months ended September 30, 2020, and 2019.
Receivables, Unbilled Services and Unearned Revenue
3 unchanged sentences
The following table provides information about receivables, unbilled services, and unearned revenue (contract liabilities) from contracts with customers for CDD.
−Removed: June 30, 2020 December 31, 2019
+Added: September 30, 2020 December 31, 2019
Receivables, which are included in accounts receivable $ 834.0 $ 771.1
1 unchanged sentence
Unearned revenue 492.9 449.2
−Removed: Revenues recognized during the period, that were included in the unearned revenue balance at the beginning of the period for the six months ended June 30, 2020, and June 30, 2019, were $ 102.2 and $ 161.6 , respectively.
+Added: Revenues recognized during the period, that were included in the unearned revenue balance at the beginning of the period for the nine months ended September 30, 2020, and September 30, 2019, were $ 237.2 and $ 232.8 , respectively.
Credit Loss Rollforward
−Removed: With the adoption of current expected credit loss standard in 2020, the Company estimates future expected losses on accounts receivable, unbilled services and notes receivable over the remaining collection period of the instrument.
−Removed: The rollforward for the allowance for credit losses for the six months ended June 30, 2020, is as follows:
−Removed: For the Six Months Ended June 30, 2020
−Removed: Accounts Receivable Unbilled Services Note Receivable Total
+Added: With the adoption of the current expected credit loss standard in 2020, the Company estimates future expected losses on accounts receivable, unbilled services and notes receivable over the remaining collection period of the instrument.
+Added: The rollforward for the allowance for credit losses for the nine months ended September 30, 2020, is as follows:
+Added: For the Nine Months Ended September 30, 2020
+Added: Accounts Receivable Unbilled Services Note and Other Receivables Total
Allowance for credit losses as of December 31, 2019 $ 19.0 $ 2.3 $ — $ 21.3
3 unchanged sentences
Ending allowance for credit losses $ 26.6 $ 6.3 $ 5.7 $ 38.6
−Removed: The note receivable is the floating note receivable due 2022 from the Envigo transaction which is recorded in Other assets, net.
−Removed: During the six months ended June 30, 2020, the Company also recorded $ 23.3 of additional implicit price concessions as a result of anticipated collection challenges from the economic decline.
+Added: Notes and other receivables includes the $ 110.0 due 2022 from the Envigo transaction which is recorded in Other assets, net.
+Added: During the three months ended September 30, 2020, the Company recorded an impairment for a note receivable related to an LCD investment of $ 0.7 .
Performance Obligations Under Long-Term Contracts
Long-term contracts at the Company consist primarily of fully managed clinical studies within CDD.
−Removed: The amount of existing performance obligations under such long-term contracts unsatisfied as of June 30, 2020, was $ 4,498.8 .
−Removed: The Company expects to recognize approximately 31 % of the remaining performance obligations as of June 30, 2020, as revenue over the next 12 months, and the balance thereafter.
+Added: The amount of existing performance obligations under such long-term contracts unsatisfied as of September 30, 2020, was $ 4,795.0 .
+Added: The Company expects to recognize approximately 32 % of the remaining performance obligations as of September 30, 2020, as revenue over the next 12 months, and the balance thereafter.
The Company's long-term contracts generally range from 1 to 8 years.
−Removed: Within CDD, revenues of $ 13.7 and $ 48.4 were recognized during the six months ended June 30, 2020, and 2019, respectively, from performance obligations that were satisfied in previous periods.
+Added: Within CDD, revenues of $ 44.8 and $ 67.7 were recognized during the nine months ended September 30, 2020, and 2019, respectively, from performance obligations that were satisfied in previous periods.
This revenue comes from adjustments related to changes in scope and estimates in full service clinical studies.
BUSINESS ACQUISITIONS AND DISPOSITIONS
−Removed: On June 3, 2019, CDD acquired Envigo's nonclinical contract research services business, expanding CDD's global nonclinical drug development capabilities with additional locations and resources.
−Removed: Additionally, the Company divested the Covance Research Products (CRP) business, which was a part of CDD, to Envigo.
−Removed: As part of this sale, CDD entered into a multi-year, renewable supply agreement with Envigo.
−Removed: The Company paid cash consideration of $ 601.0 , received a floating rate
+Added: During the nine months ended September 30, 2020, the Company acquired various business and related assets for approximately $ 208.8 in cash (including contingent consideration of $ 6.0 and net of cash acquired), $ 113.4 within LCD and $ 95.4 within CDD.
+Added: The purchase consideration for all acquisitions in the nine months ended September 30, 2020, has been allocated under the acquisition method of accounting to the estimated fair market value of the net assets acquired, including approximately $ 88.5 in identifiable intangible assets and a residual amount of non-tax deductible goodwill of approximately $ 128.9 .
+Added: The amortization periods for intangible assets acquired from these businesses range from 5 to 15 years for customer relationships and non-compete agreements.
+Added: These acquisitions were made primarily to extend the Company's geographic reach in important market areas, enhance the Company's scientific differentiation and to expand the breadth and scope of the
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
1 unchanged sentence
(dollars and shares in millions, except per share data)
−Removed: secured note of $ 110.0 , and recorded a loss on the sale of CRP of $ 12.2 .
+Added: Company's CRO services.
+Added: The excess of the fair value of the consideration conveyed over the fair value of the net assets acquired was recorded as goodwill.
+Added: The goodwill reflects the Company's expectations to utilize the acquired businesses' workforce and established relationships and the benefits of being able to leverage operational efficiencies with favorable growth opportunities in these markets.
+Added: These acquisitions contributed $ 13.1 and $ 13.8 of revenue during the three and nine months ended September 30, 2020, respectively.
+Added: The acquisitions contributed $ 3.5 and $ 3.6 of operating income, during the three and nine months ended September 30, 2020, respectively.
+Added: During the nine months ended September 30, 2019, the Company acquired various businesses and related assets for approximately $ 852.9 in cash (net of cash acquired), $ 647.4 within CDD and $ 205.5 within LCD.
+Added: The purchase consideration for all acquisitions in the nine months ended September 30, 2019, has been allocated to the estimated fair market value of the net assets acquired, including approximately $ 324.1 in identifiable intangible assets and a residual amount of non-tax deductible goodwill for approximately $ 512.3 .
+Added: The amortization periods for intangible assets acquired from these businesses range from 11 to 15 years for customer relationships.
+Added: These acquisitions were made primarily to extend the Company's geographic reach in important market areas, enhance the Company's scientific differentiation and to expand the breadth and scope of the Company's CRO services.
+Added: The excess of the fair value of the consideration conveyed over the fair value of the net assets acquired was recorded as goodwill.
+Added: The goodwill reflects the Company's expectations to utilize the acquired businesses' workforce and established relationships and the benefits of being able to leverage operational efficiencies with favorable growth opportunities in these markets.
+Added: On June 3, 2019, CDD acquired Envigo's nonclinical contract research services business, expanding CDD's global nonclinical drug development capabilities with additional locations and resources.
+Added: Additionally, the Company divested the Covance Research Products business (CRP), which was a part of CDD, to Envigo.
+Added: As part of this sale, CDD entered into a multi-year, renewable supply agreement with Envigo.
+Added: The Company paid cash consideration of $ 601.0 (which is included in the nine month acquisition numbers above), received a floating rate secured note of $ 110.0 , and recorded a loss on the sale of CRP of $ 12.2 .
The Company funded the transaction through a new term loan facility.
4 unchanged sentences
Total $ 711.0
−Removed: Preliminary June 30, 2019 Measurement Period Adjustments Final
June 30, 2020
5 unchanged sentences
Prepaid expenses and other 10.8
−Removed: Property, plant and equipment (including ROU operating lease assets) 99.1 29.3 128.4
+Added: Property, plant and equipment 128.4
Deferred income taxes 25.2
7 unchanged sentences
Unearned revenue 49.9
−Removed: Operating lease liabilities 15.0 ( 15.0 ) —
Other liabilities 69.3
3 unchanged sentences
Total $ 711.0
−Removed: The final purchase consideration for Envigo has been allocated to the estimated fair market value of the net assets acquired, including approximately $ 141.4 in identifiable intangible assets and a residual amount of non-tax-deductible goodwill of approximately $ 376.6 .
−Removed: The amortization period for intangible assets acquired is 11 years for customer relationships.
−Removed: During the six months ended June 30, 2020, the Company recorded a $ 5.0 charge for the estimated credit loss related to the CDD floating rate secured note receivable due 2022 from Envigo.
−Removed: During the six months ended June 30, 2020, the Company acquired a business and related assets for approximately $ 17.3 in cash (including contingent consideration of $ 6.0 and net of cash acquired).
−Removed: The purchase consideration for this acquisition has been allocated to the estimated fair market value of the net assets acquired, including approximately $ 9.2 in identifiable intangible assets and a residual amount of non-tax deductible goodwill of approximately $ 8.1 .
−Removed: This acquisition was made primarily to expand its specialty testing.
−Removed: During the six months ended June 30, 2019, the Company acquired various businesses and related assets for approximately $ 117.7 in cash (net of cash acquired).
−Removed: The purchase consideration for all acquisitions in the six months ended June 30, 2019, has been allocated to the estimated fair market value of the net assets acquired, including approximately $ 90.7 in identifiable intangible assets and a residual amount of non-tax deductible goodwill for approximately $ 53.8 .
−Removed: The amortization periods for intangible assets acquired from these businesses range from 11 to 15 years for customer relationships.
−Removed: These acquisitions were made primarily to extend the Company's geographic reach in important market areas, enhance the Company's scientific differentiation and to expand the breadth and scope of the Company's CRO services.
−Removed: The excess of the fair value of the consideration conveyed over the fair value of the net assets acquired was recorded as goodwill.
−Removed: The goodwill reflects the Company's expectations to utilize the acquired businesses' workforce and established relationships and the benefits of being able to leverage operational efficiencies with favorable growth opportunities in these markets.
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
1 unchanged sentence
(dollars and shares in millions, except per share data)
+Added: The final purchase consideration for Envigo has been allocated to the estimated fair market value of the net assets acquired, including approximately $ 141.4 in identifiable intangible assets and a residual amount of non-tax-deductible goodwill of approximately $ 376.6 .
+Added: The amortization period for intangible assets acquired is 11 years for customer relationships.
Unaudited Pro Forma Information
−Removed: Had the Company's total 2019 and 2020 acquisitions been completed as of January 1, 2019, the Company's pro forma results would have been as follows:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Had the Company's total 2019 and 2020 acquisitions been completed as of January 1, 2018, or January 1, 2019, respectively, the Company's pro forma results would have been as follows:
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2020 2019 2020 2019
1 unchanged sentence
Net earnings attributable to Laboratory Corporation of America Holdings $ 744.9 $ 224.3 $ 666.3 $ 612.9
−Removed: EARNINGS (LOSS) PER SHARE
−Removed: Basic earnings (loss) per share is computed by dividing net earnings attributable to Laboratory Corporation of America Holdings by the weighted average number of common shares outstanding.
−Removed: Diluted earnings (loss) per share is computed by dividing net earnings including the impact of dilutive adjustments by the weighted average number of common shares outstanding plus potentially dilutive shares, as if they had been issued at the earlier of the date of issuance or the beginning of the period presented.
+Added: EARNINGS PER SHARE
+Added: Basic earnings per share is computed by dividing net earnings attributable to Laboratory Corporation of America Holdings by the weighted average number of common shares outstanding.
+Added: Diluted earnings per share is computed by dividing net earnings including the impact of dilutive adjustments by the weighted average number of common shares outstanding plus potentially dilutive shares, as if they had been issued at the earlier of the date of issuance or the beginning of the period presented.
Potentially dilutive common shares result primarily from the Company’s outstanding stock options, restricted stock awards, restricted stock units, and performance share awards.
−Removed: The following represents a reconciliation of basic earnings (loss) per share to diluted earnings (loss) per share:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: The following represents a reconciliation of basic earnings per share to diluted earnings per share:
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2020 2019 2020 2019
−Removed: Earnings Shares Per Share Amount Earnings Shares Per Share Amount Earnings (Loss) Shares Per Share Amount Earnings Shares Per Share Amount
−Removed: Basic earnings (loss) per share:
−Removed: Net earnings (loss) $ 231.6 97.3 $ 2.38 $ 190.4 98.1 $ 1.94 $ ( 85.6 ) 97.2 $ ( 0.88 ) $ 376.0 98.4 $ 3.82
+Added: Earnings Shares Per Share Amount Earnings Shares Per Share Amount Earning Shares Per Share Amount Earnings Shares Per Share Amount
+Added: Basic earnings per share:
+Added: Net earnings $ 703.4 97.4 $ 7.22 $ 220.7 97.6 $ 2.26 $ 617.8 97.3 $ 6.35 $ 596.7 98.1 $ 6.08
Dilutive effect of employee stock options and awards — 0.7 — 0.7 — 0.6 — 0.7
−Removed: Net earnings (loss) including impact of dilutive adjustments (a)
−Removed: $ 231.6 97.7 $ 2.37 $ 190.4 98.8 $ 1.93 $ ( 85.6 ) 97.2 $ ( 0.88 ) $ 376.0 99.1 $ 3.79
−Removed: (a) Due to the Company's net loss for the six months ended June 30, 2020, diluted earnings (loss) per share is the same as basic earnings (loss) per share.
+Added: Net earnings including impact of dilutive adjustments $ 703.4 98.1 $ 7.17 $ 220.7 98.3 $ 2.25 $ 617.8 97.9 $ 6.31 $ 596.7 98.8 $ 6.04
Diluted earnings per share represent the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.
1 unchanged sentence
The following table summarizes the potential common shares not included in the computation of diluted earnings per share because their impact would have been antidilutive:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2020 2019 2020 2019
1 unchanged sentence
RESTRUCTURING AND OTHER CHARGES
−Removed: During the six months ended June 30, 2020, the Company recorded net restructuring and other charges of $ 31.8 :
+Added: During the nine months ended September 30, 2020, the Company recorded net restructuring and other charges of $ 38.9 :
$ 13.4 within LCD and $ 25.5 within CDD.
−Removed: The charges were comprised of $ 10.5 related to severance and other personnel costs, $ 8.0 for a CDD lab facility and equipment impairments, and $ 20.0 in facility closures, impairment of operating lease right-of use assets and general integration activities.
+Added: The charges were comprised of $ 12.8 related to severance and other personnel costs, $ 11.0 for a CDD leased lab facility and equipment impairments, and $ 24.0 in facility closures, impairment of operating lease right-of use assets and general integration activities.
The charges were offset by the reversal of previously established liability of $ 1.1 and $ 7.8 in unused severance costs and facility-related costs, respectively.
−Removed: During the six months ended June 30, 2019, the Company recorded net restructuring and other charges of $ 34.2 :
+Added: During the nine months ended September 30, 2019, the Company recorded net restructuring and other charges of $ 48.4 :
$ 22.8 within LCD and $ 25.6 within CDD.
The charges were comprised of $ 26.2 related to severance and other personnel costs and $ 22.0 in costs associated with facility closures, impairment of operating lease right-of-use assets and general integration initiatives.
−Removed: The charges were increased by the adjustment of previously established reserves of $ 0.4 in severance reserves.
+Added: The charges were increased by the adjustment of previously established reserves of $ 0.4 in severance reserves and decreased by a reversal of $ 0.2 in unused facility reserves.
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
5 unchanged sentences
Restructuring charges 3.9 5.2 8.9 6.7 24.7
−Removed: Adjustments to prior restructuring accruals ( 0.1 ) ( 0.4 ) ( 0.9 ) ( 5.3 ) ( 6.7 )
Impairment of lab facility and equipment — 5.8 — 17.3 23.1
−Removed: Impairment of operating lease right-of-use asset — 6.1 — 4.0 10.1
Cash payments and other adjustments ( 4.4 ) ( 12.2 ) ( 10.4 ) ( 23.8 ) ( 50.8 )
−Removed: Balance as of June 30, 2020 $ 0.1 $ 2.0 $ 8.6 $ 2.3 $ 13.0
+Added: Balance as of September 30, 2020 $ — $ 1.5 $ 4.0 $ 4.9 $ 10.4
Current $ 8.1
1 unchanged sentence
GOODWILL AND INTANGIBLE ASSETS
−Removed: The changes in the carrying amount of goodwill for the six months ended June 30, 2020, are as follows:
+Added: The changes in the carrying amount of goodwill for the nine months ended September 30, 2020, are as follows:
LCD CDD Total
−Removed: Balance as of January 1, 2020 $ 3,721.5 $ 4,143.5 $ 7,865.0
+Added: Balance as of December 31, 2019 $ 3,721.5 $ 4,143.5 $ 7,865.0
Goodwill acquired during the period 66.1 73.0 139.1
1 unchanged sentence
Foreign currency impact and other adjustments to goodwill ( 2.2 ) 34.3 32.1
−Removed: Balance as of June 30, 2020 $ 3,732.3 $ 3,690.4 $ 7,422.7
+Added: Balance as of September 30, 2020 $ 3,781.7 $ 3,832.1 $ 7,613.8
The Company assesses goodwill and indefinite-lived intangibles for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.
−Removed: Based upon the revised forecasted revenues and operating income following the declaration of the COVID-19 global pandemic, management concluded there was a triggering event and updated its annual 2019 goodwill impairment testing as of March 31, 2020, for its CDD reporting units, including one where the 2019 fair value exceeded carrying value by approximately 10 %, and its LCD reporting units.
−Removed: Based on the quantitative impairment assessment, the Company concluded that the fair value was less than carrying value for two of its reporting units and recorded a goodwill impairment of $ 418.7 for the CDD segment and $ 3.7 for LCD segment.
+Added: Based upon the revised forecasted revenues and operating income following the declaration of the COVID-19 global pandemic, management concluded there was a triggering event and updated its annual 2019 goodwill impairment testing as of March 31, 2020, for its CDD reporting units and its LCD reporting units.
+Added: Based on the quantitative impairment assessment, the Company concluded that the fair value was less than carrying value for two of its reporting units, including one where the 2019 fair value exceeded carrying value by approximately 10.0 %, and recorded a goodwill impairment of $ 418.7 for the CDD segment and $ 3.7 for LCD segment.
The Company utilized a combination of income and market approaches to determine the fair value of the CDD reporting units.
1 unchanged sentence
A non-cash charge of $ 418.7 was recognized and included in goodwill and other asset impairments on the Consolidated Statement of Operations to reduce the carrying amount of goodwill for the CDD reporting unit to fair value.
−Removed: Following the impairment charge, the carrying value of goodwill for this reporting unit is $ 1,560.5 .
+Added: Following the impairment charge, the carrying value of goodwill for this reporting unit is $ 1,627.5 as of September 30, 2020.
The other CDD reporting unit evaluated indicated a fair value that exceeded carrying value by less than 10.0 %.
Management notes that a + 1.0 % change in the discount rate in the March 31, 2020 analysis would reduce the headroom to approximately 2.0 %.
−Removed: Goodwill for this reporting unit as of June 30, 2020 is $ 628.5 .
+Added: Goodwill for this reporting unit as of September 30, 2020 is $ 646.2 .
The Company utilized the income approach to determine the fair value of the LCD reporting units.
3 unchanged sentences
Management notes that a + 1.0 % change in the discount rate in the March 31, 2020 analysis would cause the fair value to be less than carrying value and would result in an impairment of approximately $ 40.0 .
−Removed: Goodwill and indefinite-lived intangibles of Canadian licenses for this reporting unit as of June 30, 2020 were $ 84.4 and $ 459.7 , respectively.
−Removed: Although the Company believes that the current assumptions and estimates used in its goodwill analysis are reasonable, supportable, and appropriate, continued efforts to maintain or improve the performance of this business could be impacted by unfavorable or unforeseen changes which could impact the existing assumptions used in the impairment analysis.
+Added: Goodwill and indefinite-lived intangibles of Canadian licenses for this reporting unit as of September 30, 2020, were $ 86.0 and $ 468.4 , respectively.
+Added: Although the Company believes that the current assumptions and estimates used in its goodwill analysis are reasonable, supportable, and appropriate, continued efforts to maintain or improve the performance of these businesses could be impacted by unfavorable or unforeseen changes which could impact the existing assumptions used in the impairment analysis.
+Added: Various factors could reasonably be expected to unfavorably impact existing assumptions:
+Added: primarily delays in new customer bookings and the related delay in revenue from new customers, increases in customer termination activity or increases in operating costs.
+Added: In addition, given the ongoing and rapidly changing nature of the COVID-19 pandemic, there is significant uncertainty
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
1 unchanged sentence
(dollars and shares in millions, except per share data)
−Removed: factors could reasonably be expected to unfavorably impact existing assumptions:
−Removed: primarily delays in new customer bookings and the related delay in revenue from new customers, increases in customer termination activity or increases in operating costs.
−Removed: In addition, given the ongoing and rapidly changing nature of the COVID-19 pandemic, there is significant uncertainty regarding the duration and severity of the pandemic as well as any future government restrictions, which may unfavorably impact existing assumptions.
+Added: regarding the duration and severity of the pandemic as well as any future government restrictions, which may unfavorably impact existing assumptions.
Accordingly, there can be no assurance that the estimates and assumptions made for the purposes of the goodwill impairment analysis will prove to be accurate predictions of future performance.
4 unchanged sentences
The components of identifiable intangible assets are as follows:
−Removed: June 30, 2020 December 31, 2019
+Added: September 30, 2020 December 31, 2019
Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net
6 unchanged sentences
$ 5,953.1 $ ( 2,032.6 ) $ 3,920.5 $ 5,885.6 $ ( 1,851.1 ) $ 4,034.5
−Removed: The Company recorded a non-cash charge of $ 2.7 for the impairment of a CDD tradename during the six months ended June 30, 2020.
−Removed: Amortization of intangible assets for the three months ended June 30, 2020 and 2019, was $ 60.1 and $ 60.2 , respectively and for the six months ended June 30, 2020 and 2019 was $ 122.4 and $ 117.3 , respectively.
+Added: The Company recorded non-cash charges of $ 30.5 for the impairment of identifiable intangible assets during the nine months ended September 30, 2020, within CDD.
+Added: During the three months ended March 31, 2020, a $ 2.7 impairment charge was recorded for a tradename.
+Added: During the three months ended September 30, 2020, additional impairment charges of $ 10.1 and $ 17.7 for customer relationships and technology intangible assets, respectively were recorded due to the loss of a contract from a prior acquisition.
+Added: Amortization of intangible assets for the three months ended September 30, 2020, and 2019, was $ 62.2 and $ 61.7 , respectively and for the nine months ended September 30, 2020, and 2019 was $ 184.6 and $ 179.0 , respectively.
Amortization expense for the net carrying amount of intangible assets is estimated to be $ 60.0 for the remainder of fiscal 2020, $ 238.5 in fiscal 2021, $ 232.6 in fiscal 2022, $ 229.5 in fiscal 2023, $ 224.6 in fiscal 2024, and $ 2,380.2 thereafter.
−Removed: Short-term borrowings and the current portion of long-term debt at June 30, 2020, and December 31, 2019, consisted of the following:
+Added: Short-term borrowings and the current portion of long-term debt at September 30, 2020, and December 31, 2019, consisted of the following:
+Added: September 30,
2020 December 31, 2019
7 unchanged sentences
(dollars and shares in millions, except per share data)
−Removed: Long-term debt at June 30, 2020, and December 31, 2019, consisted of the following:
+Added: Long-term debt at September 30, 2020, and December 31, 2019, consisted of the following:
+Added: September 30,
2020 December 31, 2019
12 unchanged sentences
Total long-term debt $ 5,417.3 $ 5,789.8
+Added: On August 17, 2020, the Company redeemed the remaining $ 412.2 of its 4.625 % Senior Notes due November 15, 2020, using available cash on hand.
+Added: The Company exited the remaining fixed-to-variable interest rate swap arrangement in August 2020, in connection with this redemption and recorded a gain of $ 1.6 on the extinguishment.
+Added: The gain was included in Other, net on the Condensed Consolidated Statement of Operations.
Credit Facilities
1 unchanged sentence
The 2019 term loan facility accrues interest at a per annum rate equal to, at the Company's election, either a LIBOR rate plus a margin ranging from 0.55% to 1.175% , or a base rate determined according to a prime rate or federal funds rate plus a margin ranging from 0.0% to 0.175% .
−Removed: The 2019 term loan balance at June 30, 2020 and December 31, 2019, was $ 375.0 and $ 375.0 , respectively.
−Removed: As of June 30, 2020, the effective interest rate on the 2019 term loan was 0.98 %.
+Added: The 2019 term loan balance at September 30, 2020, and December 31, 2019, was $ 375.0 and $ 375.0 , respectively.
+Added: As of September 30, 2020, the effective interest rate on the 2019 term loan was 0.95 %.
The Company also maintains a senior revolving credit facility consisting of a five-year facility in the principal amount of up to $ 1,000.0 , with the option of increasing the facility by up to an additional $ 350.0 , subject to the agreement of one or more new or existing lenders to provide such additional amounts and certain other customary conditions.
2 unchanged sentences
The revolving credit facility is permitted to be used for general corporate purposes, including working capital, capital expenditures, funding of share repurchases and certain other payments, acquisitions and other investments.
−Removed: There were no balances outstanding on the Company's current revolving credit facility at June 30, 2020, and December 31, 2019.
−Removed: As of June 30, 2020, the effective interest rate on the revolving credit facility was 1.14 %.
+Added: There were no balances outstanding on the Company's current revolving credit facility at September 30, 2020, and December 31, 2019.
+Added: As of September 30, 2020, the effective interest rate on the revolving credit facility was 1.12 %.
The credit facility expires on September 15, 2022.
Under the term loan facility and the revolving credit facility, the Company is subject to negative covenants limiting subsidiary indebtedness and certain other covenants typical for investment grade-rated borrowers, and the Company is required to maintain certain leverage ratios.
−Removed: In May 2020, the Company entered into amendments to its term loan facility and its revolving credit facility, in each case to, among other things, increase the maximum leverage ratio covenant to 5.0 x debt to last twelve months EBITDA for each of the three periods ended June 30, September 30, and December 31, 2020, 4.5 x for period ended March 31, 2021 and then reverts back to 4.0 x.
−Removed: The Company was in compliance with all covenants in the term loan facility and the revolving credit facility at June 30, 2020 and expects that it will remain in compliance with its existing debt covenants for the next twelve months.
−Removed: The Company's availability of $ 997.0 at June 30, 2020, under its revolving credit facility reflects a reduction equivalent to the amount of the Company's outstanding letters of credit.
−Removed: During the fourth quarter of 2020, $ 412.2 of the Company's senior notes mature.
−Removed: The Company has elected to redeem these notes in August 2020 at par using from available cash on hand and borrowings under its revolving credit facility.
−Removed: At June 30, 2020, the Company had $ 557.0 of cash and $ 997.0 of available borrowings under its revolving credit facility, which does not mature until 2022, and the Company was in compliance with all of its debt covenants.
−Removed: In May 2020, in order to obtain increased financial covenant flexibility, the Company and its lenders entered into amendments to the term loan facility and the revolving credit facility to increase the maximum leverage ratio to 5.0 x debt to last twelve months EBITDA for the three month periods ending June 30, September 30 and December 31, 2020 and 4.5 x for the period ended March 31, 2021.
−Removed: The amendments also provide that during any period in which the Company's leverage ratio exceeds 4.5 x debt to last twelve months
+Added: In May 2020, the Company entered into amendments to its term loan facility and its revolving credit facility, in each case to, among other things, increase the maximum leverage ratio covenant to 5.0 x debt to last twelve months EBITDA for each of the three periods ended June 30, September 30, and December 31, 2020, and 4.5 x for period ended March 31, 2021.
+Added: From and including the period ending June 30, 2021, the maximum leverage ratio reverts back to 4.0 x.
+Added: The Company was in compliance with all covenants in the term loan facility and the revolving credit facility at September 30, 2020, and expects that it will remain in compliance with its existing debt covenants for the next twelve months.
+Added: The Company's availability of $ 997.0 at September 30, 2020, under its revolving credit facility reflects a reduction equivalent to the amount of the Company's outstanding letters of credit.
+Added: At September 30, 2020, the Company had $ 667.2 of cash and cash equivalents and $ 997.0 of available borrowings under its revolving credit facility, which does not mature until 2022, and the Company was in compliance with all of its debt covenants.
+Added: In May 2020, in order to obtain increased financial covenant flexibility, the Company and its lenders entered into amendments
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
1 unchanged sentence
(dollars and shares in millions, except per share data)
−Removed: EBITDA (i) the Company will be prohibited from consummating share repurchases, subject to limited exceptions, (ii) borrowings under the revolving credit facility will accrue interest at a per annum rate equal to, at the Company's election, either a LIBOR rate plus a margin of 1.25 % or a base rate plus a margin of 0.25 %, (iii) the facility fee that the Company is required to pay on the aggregate commitments under the revolving credit facility will be 0.25 % per annum, and (iv) borrowings under the term loan facility will accrue interest at a per annum rate equal to, at the Company's election, either a LIBOR rate plus a margin of 1.175 % or a base rate plus a margin of 0.175 %.
−Removed: The Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of its business and the effects such impacts will have on the Company's liquidity.The significance of the impact on the Company’s business is not yet certain and depends on numerous evolving factors that the Company may not be able to accurately predict.
+Added: to the term loan facility and the revolving credit facility to increase the maximum leverage ratio to 5.0 x debt to last twelve months EBITDA for the three month periods ending June 30, September 30 and December 31, 2020, and 4.5 x for the period ended March 31, 2021.
+Added: From and including the period ending June 30, 2021, the maximum leverage ratio reverts back to 4.0 x.
+Added: The amendments also provide that during any period in which the Company's leverage ratio exceeds 4.5 x debt to last twelve months EBITDA (i) the Company will be prohibited from consummating share repurchases, subject to limited exceptions, (ii) borrowings under the revolving credit facility will accrue interest at a per annum rate equal to, at the Company's election, either a LIBOR rate plus a margin of 1.25 % or a base rate plus a margin of 0.25 %, (iii) the facility fee that the Company is required to pay on the aggregate commitments under the revolving credit facility will be 0.25 % per annum, and (iv) borrowings under the term loan facility will accrue interest at a per annum rate equal to, at the Company's election, either a LIBOR rate plus a margin of 1.175 % or a base rate plus a margin of 0.175 %.
+Added: The Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of its business and the effects such impacts are having and will have on the Company's liquidity.
+Added: The significance of the impact on the Company’s business is not yet certain and depends on numerous evolving factors that the Company may not be able to accurately predict.
PREFERRED STOCK AND COMMON SHAREHOLDERS’ EQUITY
1 unchanged sentence
The Company is authorized to issue up to 30.0 shares of preferred stock, par value $ 0.10 per share.
−Removed: There were no preferred shares outstanding as of June 30, 2020 and December 31, 2019.
+Added: There were no preferred shares outstanding as of September 30, 2020, and December 31, 2019.
The changes in common shares issued are summarized below:
3 unchanged sentences
Retirement of common stock ( 0.6 )
−Removed: Common shares at June 30, 2020 97.3
+Added: Common shares at September 30, 2020 97.4
Share Repurchase Program
3 unchanged sentences
Remaining amounts are recognized as a reduction in retained earnings.
−Removed: As of June 30, 2020, the Company had outstanding authorization from the board of directors to purchase up to $ 800.0 of the Company's common stock.
+Added: As of September 30, 2020, the Company had outstanding authorization from the board of directors to purchase up to $ 800.0 of the Company's common stock.
The repurchase authorization has no expiration date.
−Removed: however, the Company temporarily suspended stock repurchases beginning in March 2020 due to the impact of the COVID-19 pandemic.
+Added: The Company reinstated its share repurchase program in October 2020 following the temporary suspension of stock repurchases beginning in March 2020 as a result of the anticipated impact of the COVID-19 pandemic.
Accumulated Other Comprehensive Earnings
5 unchanged sentences
Tax effect of adjustments — ( 2.1 ) ( 2.1 )
−Removed: Balance as of June 30, 2020 $ ( 365.9 ) $ ( 83.1 ) $ ( 449.0 )
+Added: Balance as of September 30, 2020 $ ( 233.0 ) $ ( 81.6 ) $ ( 314.6 )
The Company does not recognize a tax benefit unless it concludes that it is more likely than not that the benefit will be sustained on audit by the taxing authority based solely on the technical merits of the associated tax position.
If the recognition threshold is met, the Company recognizes a tax benefit measured at the largest amount of the tax benefit that it believes is greater than 50 % likely to be realized.
−Removed: The gross unrecognized income tax benefits were $ 40.4 and $ 31.7 at June 30, 2020 and December 31, 2019, respectively.
+Added: The gross unrecognized income tax benefits were $ 41.3 and $ 31.7 at September 30, 2020, and December 31, 2019, respectively.
It is anticipated that the amount of the unrecognized income tax benefits will change within the next 12 months;
−Removed: however, these changes are not expected to have a significant impact on the results of operations, cash flows or the financial position of the Company.
−Removed: As of June 30, 2020 and December 31, 2019, $ 40.4 and $ 31.7 , respectively, are the approximate amounts of gross unrecognized income tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods.
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
1 unchanged sentence
(dollars and shares in millions, except per share data)
+Added: however, these changes are not expected to have a significant impact on the results of operations, cash flows or the financial position of the Company.
+Added: As of September 30, 2020, and December 31, 2019, $ 41.3 and $ 31.7 , respectively, are the approximate amounts of gross unrecognized income tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods.
The Company recognizes interest and penalties related to unrecognized income tax benefits in income tax expense.
−Removed: Accrued interest and penalties related to uncertain tax positions totaled $ 8.2 and $ 5.5 as of June 30, 2020 and December 31, 2019, respectively.
+Added: Accrued interest and penalties related to uncertain tax positions totaled $ 9.0 and $ 5.5 as of September 30, 2020, and December 31, 2019, respectively.
The Company has substantially concluded all U.S.
35 unchanged sentences
On August 17, 2011, the U.S.
−Removed: District Court for the Southern District of New York unsealed a False Claims Act lawsuit, United States of America ex rel.
+Added: District Court for the
+Added: LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
+Added: (dollars and shares in millions, except per share data)
+Added: Southern District of New York unsealed a False Claims Act lawsuit, United States of America ex rel.
NPT Associates v.
2 unchanged sentences
The lawsuit seeks actual and treble damages and civil penalties for each alleged false claim, as well as recovery of costs, attorney's fees, and legal expenses.
−Removed: LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (dollars and shares in millions, except per share data)
Neither the U.S.
20 unchanged sentences
On February 17, 2020, the Florida Supreme Court accepted jurisdiction of the lawsuit.
+Added: The Court has scheduled oral arguments for December 9, 2020.
The Company will vigorously defend the lawsuit.
35 unchanged sentences
(Savoy), a wholly owned subsidiary of the Company, as defendants.
−Removed: The complaints alleged that the defendants violated Sections 14(e), 14(d)(4) and 20 of the Securities Exchange Act of 1934 by failing to disclose certain allegedly material information.
+Added: The complaints alleged that the defendants violated Sections 14(e), 14(d)(4) and 20 of the Securities Exchange Act of 1934 by failing to
+Added: LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
+Added: (dollars and shares in millions, except per share data)
+Added: disclose certain allegedly material information.
In addition, the complaints in the Malkoff action, the Asiatrade action, and the Cusumano action alleged that the Individual Defendants breached their fiduciary duties to Sequenom shareholders.
2 unchanged sentences
On September 6, 2016, the Court entered an order consolidating for all pre-trial purposes the six individual actions described above under the caption In re Sequenom, Inc.
−Removed: LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (dollars and shares in millions, except per share data)
Shareholder Litig.
49 unchanged sentences
On January 22, 2020, the Company filed Motions to Dismiss all claims.
−Removed: The consolidated Complaint generally alleges that the Company did not adequately protect its patients’ data and failed to timely notify those patients of the AMCA Incident.
−Removed: The Complaint asserts various causes of action, including but not limited to negligence, breach of implied contract, unjust enrichment, and the violation of state data protection statutes.
−Removed: The Complaint seeks damages on behalf of a class of all affected Company customers.
−Removed: The Company will vigorously defend the multi-district litigation.
+Added: The consolidated Complaint generally alleges that the Company did not adequately protect its
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
1 unchanged sentence
(dollars and shares in millions, except per share data)
+Added: patients’ data and failed to timely notify those patients of the AMCA Incident.
+Added: The Complaint asserts various causes of action, including but not limited to negligence, breach of implied contract, unjust enrichment, and the violation of state data protection statutes.
+Added: The Complaint seeks damages on behalf of a class of all affected Company customers.
+Added: The Company will vigorously defend the multi-district litigation.
The Company was served with a shareholder derivative lawsuit, Raymond Eugenio, Derivatively on Behalf of Nominal Defendant, Laboratory Corporation of America Holdings v.
19 unchanged sentences
Laboratory Corporation of America , filed in the Superior Court of California, County of Sacramento.
−Removed: All three cases were subsequently removed to the U.S.
+Added: All three lawsuits were subsequently removed to the U.S.
District Court for the Central District of California, and then consolidated for all pre-trial proceedings.
−Removed: In the lawsuits, Plaintiffs allege that employees were not properly paid overtime compensation, minimum wages, meal and rest break premiums, did not receive compliant wage statements, and were not properly paid wages upon termination of employment.
+Added: In the lawsuits, the Plaintiffs allege that employees were not properly paid overtime compensation, minimum wages, meal and rest break premiums, did not receive compliant wage statements, and were not properly paid wages upon termination of employment.
The Plaintiffs assert these actions violate various California Labor Code provisions and constitute an unfair competition practice under California law.
The lawsuits seek monetary damages, civil penalties, and recovery of attorney's fees and costs.
−Removed: The parties reached a tentative settlement resolving the claims for all three cases.
−Removed: The settlement is subject to Court approval.
−Removed: If the settlement is not approved, the Company will vigorously defend the lawsuits.
+Added: On July 22, 2020, the Court issued an order granting preliminary approval of a settlement resolving all three lawsuits.
+Added: If the settlement does not receive final approval, the Company will vigorously defend the lawsuits.
On July 30, 2019, the Company was served with a class action lawsuit, Mitchell v.
7 unchanged sentences
On February 3, 2020, the Court denied without prejudice the Plaintiff's motion to conditionally certify a putative class action.
−Removed: The Company will vigorously defend the lawsuit.
+Added: On July 20, 2020, Plaintiff executed a settlement agreement resolving the lawsuit.
On January 31, 2020, the Company was served with a putative class action lawsuit, Luke Davis and Julian Vargas, et al.
4 unchanged sentences
On March 20, 2020, the Company filed a Motion to Dismiss Plaintiffs' Complaint and to Strike Class Allegations.
+Added: In August 2020, the Plaintiffs filed an Amended Complaint.
The Company will vigorously defend the lawsuit.
6 unchanged sentences
On June 16, 2020, the Company was served with a Private Attorney General Act lawsuit by the same plaintiff in Jose Bermejo v.
−Removed: Laboratory Corporation of America, filed in the Superior Court of California, County of Los Angeles Central District, alleging that certain Company practices violated California Labor Code penalty provisions related to unpaid and minimum wages, unpaid overtime, unpaid mean and rest break premiums, untimely payment of wages following separation of employment, failure to maintain accurate pay records, and non-reimbursement of business expenses.
−Removed: The second lawsuit seeks to recover civil penalties and recovery of attorney's fees and costs.
−Removed: The Company will vigorously defend both lawsuits.
LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
1 unchanged sentence
(dollars and shares in millions, except per share data)
+Added: Corporation of America, filed in the Superior Court of California, County of Los Angeles Central District, alleging that certain Company practices violated California Labor Code penalty provisions related to unpaid and minimum wages, unpaid overtime, unpaid mean and rest break premiums, untimely payment of wages following separation of employment, failure to maintain accurate pay records, and non-reimbursement of business expenses.
+Added: The second lawsuit seeks to recover civil penalties and recovery of attorney's fees and costs.
+Added: The Company will vigorously defend both lawsuits.
+Added: On August 14, 2020, the Company was served with a Subpoena Duces Tecum issued by the State of Colorado Office of the Attorney General requiring the production of documents related to urine drug testing in all states.
+Added: The Company is cooperating with this request.
+Added: On October 2, 2020, the Company was served with a putative class action lawsuit, Peterson v.
+Added: Laboratory Corporation of America Holdings , filed in the U.S.
+Added: District Court for the Northern District of New York, alleging claims for a failure to properly pay service representatives compensation for all hours worked and overtime under the Fair Labor Standards Act, as well as notice and recordkeeping claims under the New York Labor Code.
+Added: The lawsuit seeks monetary damages, liquidated damages, equitable and injunctive relief, and recovery of attorney's fees and costs.
+Added: The Company will vigorously defend the lawsuit.
+Added: On October 5, 2020, the Company was served with a putative class action lawsuit, Williams v.
+Added: LabCorp Employer Services, Inc.
+Added: et al, filed in the Superior Court of California, County of Los Angeles, alleging that certain non-exempt California-based employees were not properly compensated for work and overtime hours, not properly paid meal and rest break premiums, not reimbursed for certain business-related expenses, not properly paid for driving or wait times, and received inaccurate wage statements.
+Added: The Plaintiff also asserts claims for unfair competition under Section 17200 of the Business and Professional Code.
+Added: The lawsuit seeks monetary damages, liquidated damages, civil penalties, and recovery of attorney's fees and costs.
+Added: The Company will vigorously defend the lawsuit.
Under the Company's present insurance programs, coverage is obtained for catastrophic exposure as well as those risks required to be insured by law or contract.
8 unchanged sentences
The LCD 401(k) Plan also permits discretionary contributions by the Company of 1 % to 3 % of pay for eligible employees based on service.
−Removed: The Company incurred expense of $ 13.9 and $ 16.2 for the LCD 401(k) Plan during the three months ended June 30, 2020 and 2019 respectively, and $ 27.4 and $ 32.2 during the six months ended June 30, 2020 and 2019, respectively.
+Added: The Company incurred expense of $ 14.0 and $ 16.7 for the LCD 401(k) Plan during the three months ended September 30, 2020, and 2019, respectively, and $ 41.4 and $ 48.9 during the nine months ended September 30, 2020, and 2019, respectively.
All of the CDD U.S.
employees are eligible to participate in the CDD 401(k) Plan, which is available on a voluntary basis and features a maximum 4.5 % Company match, based upon a percentage of the employee’s contributions.
−Removed: The Company incurred expense of $ 20.3 and $ 17.9 for the Covance 401(k) plan during the three months ended June 30, 2020, and 2019, respectively, and $ 43.8 and $ 37.8 during the six months ended June 30, 2020 and 2019, respectively.
+Added: The Company incurred expense of $ 21.0 and $ 18.2 for the Covance 401(k) plan during the three months ended September 30, 2020, and 2019, respectively, and $ 64.8 and $ 56.0 during the nine months ended September 30, 2020, and 2019, respectively.
The Company also maintains several other small 401(k) plans associated with companies acquired over the last several years.
6 unchanged sentences
The Company's policy is to fund the Company Plan with at least the minimum amount required by applicable regulations.
+Added: LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
+Added: (dollars and shares in millions, except per share data)
The PEP covers a portion of the Company's senior management group.
3 unchanged sentences
The effect on operations for the Company Plan and the PEP is summarized as follows:
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2020 2019 2020 2019
6 unchanged sentences
The other components of net benefit cost, including amortization or prior service cost/credit and settlement and curtailment effects are included in other, net non-operating expenses.
−Removed: During the six months ended June 30, 2020, the Company made no contributions to the Company Plan.
−Removed: The related net pension obligation for the Company Plan and PEP was $ 92.7 and $ 93.4 as of June 30, 2020 and December 31, 2019, respectively.
+Added: During the nine months ended September 30, 2020, the Company made no contributions to the Company Plan.
+Added: The related net pension obligation for the Company Plan and PEP was $ 92.6 and $ 93.4 as of September 30, 2020, and December 31, 2019, respectively.
As a result of the Covance acquisition, the Company sponsors two defined benefit pension plans for the benefit of its employees at two U.K.
5 unchanged sentences
Plans were based on service and compensation through December 31, 2019.
−Removed: LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (dollars and shares in millions, except per share data)
−Removed: Plan is unfunded while the U.K.
+Added: The German Plan is unfunded while the U.K.
Plans are funded.
5 unchanged sentences
The related net pension obligation for these plans inclusive of the U.K.
−Removed: Plans, German Plan, and the Envigo Plan, was $ 86.0 and $ 99.1 as of June 30, 2020 and December 31, 2019, respectively.
+Added: Plans, German Plan, and the Envigo Plan, was $ 85.4 and $ 99.1 as of September 30, 2020, and December 31, 2019, respectively.
FAIR VALUE MEASUREMENTS
−Removed: The Company’s population of financial assets and liabilities subject to fair value measurements as of June 30, 2020, and December 31, 2019, is as follows:
+Added: The Company’s population of financial assets and liabilities subject to fair value measurements as of September 30, 2020, and December 31, 2019, is as follows:
Fair Value Measurements as of
−Removed: as of June 30, 2020
+Added: as of September 30, 2020
Balance Sheet Using Fair Value Hierarchy
−Removed: Classification June 30, 2020 Level 1 Level 2 Level 3
+Added: Classification September 30, 2020 Level 1 Level 2 Level 3
Noncontrolling interest put Noncontrolling interest $ 15.4 $ — $ 15.4 $ —
−Removed: Cross currency swaps Other assets, net 14.3 — 14.3 —
−Removed: Interest rate swaps Other assets, net 2.3 — 2.3 —
+Added: Cross currency swaps Other liabilities 8.8 — 8.8 —
Cash surrender value of life insurance policies Other assets, net 82.9 — 82.9 —
1 unchanged sentence
Contingent consideration Other liabilities 9.0 — — 9.0
+Added: LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
+Added: (dollars and shares in millions, except per share data)
Fair Value Measurements as of
14 unchanged sentences
Additions 6.0
−Removed: Balance at June 30, 2020 $ 9.0
+Added: Balance at September 30, 2020 $ 9.0
The Company has a noncontrolling interest put related to its Ontario subsidiary that has been classified as mezzanine equity in the Company’s condensed consolidated balance sheets.
5 unchanged sentences
Changes in the fair value of the DCP obligation are derived using quoted prices in active markets based on the market price per unit multiplied by the number of units.
−Removed: LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (dollars and shares in millions, except per share data)
−Removed: surrender value and the DCP obligations are classified within Level 2 because their inputs are derived principally from observable market data by correlation to the hypothetical investments.
+Added: The cash surrender value and the DCP obligations are classified within Level 2 because their inputs are derived principally from observable market data by correlation to the hypothetical investments.
Contingent acquisition consideration liabilities are measured at fair value using Level 3 valuations.
3 unchanged sentences
The carrying amounts of cash and cash equivalents, accounts receivable, income taxes receivable, and accounts payable are considered to be representative of their respective fair values due to their short-term nature.
−Removed: The fair market value of the Senior Notes, based on market pricing, was approximately $ 6,433.0 and $ 6,140.6 as of June 30, 2020 and December 31, 2019, respectively.
+Added: The fair market value of the Senior Notes, based on market pricing, was approximately $ 6,107.9 and $ 6,140.6 as of September 30, 2020, and December 31, 2019, respectively.
The Company's note and debt instruments are classified as Level 2 instruments, as the fair market values of these instruments are determined using other observable inputs.
4 unchanged sentences
Interest Rate Swap
−Removed: The Company is party to a fixed-to-variable interest rate swap agreement for its 4.625 % senior notes which mature on November 15, 2020, with a notional amount of $ 300.0 and variable interest rates based on one-month LIBOR plus 2.298 % to hedge against changes in the fair value of a portion of the Company's debt.
−Removed: On July 17, 2020, notice was given to holders of the notes that the Company had elected to redeem the outstanding securities on August 17, 2020.
−Removed: The interest rate swap derivative financial instrument is accounted for as fair value hedge of the Senior Notes due 2020.
−Removed: These interest rate swaps are included in prepaid and other assets or liabilities, as applicable, and added to the value of the Senior Notes.
−Removed: As the specific terms and notional amount of the derivative financial instrument matches those of the fixed-rate debt being hedged, the derivative instrument is assumed to be a perfectly effective hedge and accordingly, there is no impact to the Company's Condensed Consolidated Statements of Operations.
−Removed: Cash flows from the interest rate swap are included in operating activities.
+Added: On August 17, 2020, the Company redeemed its remaining $ 412.2 4.625 % Senior Notes due November 15, 2020, using available cash on hand.
+Added: The Company exited the remaining fixed-to-variable interest rate swap arrangement in August 2020, in connection with the redemption of the 4.625 % Senior Notes due 2020.
+Added: LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
+Added: (dollars and shares in millions, except per share data)
Carrying amount of hedged liabilities as of Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities as of
−Removed: June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019
+Added: September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019
Balance Sheet Line Item in which Hedged Items are Included
4 unchanged sentences
Of the notional value, $ 300.0 matures in 2022 and $ 300.0 matures in 2025.
−Removed: These cross currency swaps maturing in 2022 and 2025 are included in other long-term assets as of June 30, 2020.
+Added: These cross currency swaps maturing in 2022 and 2025 are included in other long-term assets as of September 30, 2020.
Changes in the fair value of the cross-currency swaps are recorded as a component of the foreign currency translation adjustment in accumulated other comprehensive income in the Condensed Consolidated Balance Sheet until the hedged item is recognized in earnings.
−Removed: The cumulative amount of the fair value hedging adjustment included in the current value of the cross currency swaps is $( 8.8 ) and $ 11.1 for the three and six months ended June 30, 2020, and was recognized as currency translation within the Condensed Consolidated Statement of Comprehensive Earnings.
−Removed: There were no amounts reclassified from the Condensed Consolidated Statement of Comprehensive Earnings to the Condensed Consolidated Statement of Operations during the three months or six months ended June 30, 2020.
−Removed: LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (dollars and shares in millions, except per share data)
+Added: The cumulative amount of the fair value hedging adjustment included in the current value of the cross currency swaps was $( 23.1 ) and $( 12.0 ) for the three and nine months ended September 30, 2020, respectively, and was recognized as currency translation within the Condensed Consolidated Statement of Comprehensive Earnings.
+Added: There were no amounts reclassified from the Condensed Consolidated Statement of Comprehensive Earnings to the Condensed Consolidated Statement of Operations during the three months or nine months ended September 30, 2020.
The table below presents the fair value of derivatives on a gross basis and the balance sheet classification of those instruments:
−Removed: June 30, 2020 December 31, 2019
+Added: September 30, 2020 December 31, 2019
Fair Value of Derivative Fair Value of Derivative
5 unchanged sentences
Cross currency swaps Other assets, net or Other liabilities $ — $ 8.8 $ 600.0 $ 3.2 $ — $ 600.0
−Removed: The table below provides information regarding the location and amount of pretax (gains) losses of derivatives designated in fair value hedging relationships:
+Added: The table below provides information regarding the location and amount of pretax (gains) losses of derivatives designated in fair value hedging:
Amount of pre-tax gain/(loss) included in other comprehensive income Amounts reclassified to the
1 unchanged sentence
Statement of Operations
−Removed: Three Months Ended June 30, Three Months Ended June 30, Six Months Ended
−Removed: June 30, Six Months Ended
+Added: Three Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30,
2020 2019 2020 2019 2020 2019 2020 2019
1 unchanged sentence
Cross currency swaps $ ( 23.1 ) $ 18.8 $ — $ — $ ( 12.0 ) $ 22.8 $ — $ —
−Removed: No gains or losses from derivative instruments classified as hedging instruments have been recognized into income for the three and six months ended June 30, 2020 and 2019.
+Added: The Company recorded a gain of $ 1.6 on the extinguishment of the interest rate swap arrangement, which was included in Other, net on the Condensed Consolidated Statement of Operations.
+Added: No additional gains or losses from derivative instruments have been recognized into income for the three and nine months ended September 30, 2020, and 2019.
+Added: LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
+Added: (dollars and shares in millions, except per share data)
SUPPLEMENTAL CASH FLOW INFORMATION
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Supplemental schedule of cash flow information:
5 unchanged sentences
Change in accrued property, plant and equipment ( 24.5 ) ( 15.9 )
−Removed: Floating rate secured note receivable due 2022 from the sale of CRP — 110.0
+Added: Floating rate secured note receivable due 2022 — 110.0
BUSINESS SEGMENT INFORMATION
−Removed: The following table is a summary of segment information for the three and six months ended June 30, 2020 and 2019.
+Added: The following table is a summary of segment information for the three and nine months ended September 30, 2020, and 2019.
The management approach has been used to present the following segment information.
5 unchanged sentences
General management and administrative corporate expenses are included in general corporate expenses below.
−Removed: LABORATORY CORPORATION OF AMERICA HOLDINGS AND SUBSIDIARIES
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
−Removed: (dollars and shares in millions, except per share data)
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, June 30,
+Added: Three Months Ended Nine Months Ended
+Added: September 30, September 30,
2020 2019 2020 2019
11 unchanged sentences
Provision for income taxes 243.4 66.4 358.0 214.4
−Removed: Net earnings (loss) 231.6 190.7 ( 85.3 ) 376.6
−Removed: Less net income attributable to noncontrolling interests — ( 0.3 ) ( 0.3 ) ( 0.6 )
−Removed: Net income (loss) attributable to Laboratory Corporation of America Holdings $ 231.6 $ 190.4 $ ( 85.6 ) $ 376.0
−Removed: SUBSEQUENT EVENTS
−Removed: In July 2020, the Company acquired two businesses and related assets for approximately $ 200.0 in cash (net of cash acquired).
−Removed: These acquisitions will be included in both the LCD and CDD segments and were made primarily to extend the Company's geographic reach in important market areas, enhance the Company's scientific differentiation and to expand the breadth and scope of the Company's services.
−Removed: On July 17, 2020, notice was given to holders of $ 412.2 of the Company’s senior notes, due November 15, 2020, that the Company had elected to redeem the outstanding securities on August 17, 2020 at par.
−Removed: The Company will repay the notes with available cash on hand and borrowings under its revolving credit facility.
+Added: Net earnings 703.7 221.0 618.4 597.6
+Added: Net earnings attributable to the noncontrolling interest ( 0.3 ) ( 0.3 ) ( 0.6 ) ( 0.9 )
+Added: Net earnings attributable to Laboratory Corporation of America Holdings $ 703.4 $ 220.7 $ 617.8 $ 596.7
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.